Interview: China state gold co. sees ties with Barrick on non-core assets

China Gold International Resources

19/06/2014 23:54

By Nicole Mordant 
    VANCOUVER, June 19 (Reuters) - Any alliance between Barrick 
Gold Corp  ABX.TO  and China's sole state-owned gold mining 
company is likely to involve a smaller, non-core Barrick mine or 
project and not any of the Canadian miner's main assets, a China 
National Gold Group official said on Thursday. 
    Barrick, the world's biggest gold producer, and China 
National, China's largest producer, have held talks at least 
three times this year on ways to cooperate, China National 
President Xin Song said in an interview. 
    Barrick's appointment of John Thornton, a China expert, as 
chairman this year has heightened expectations that the 
Toronto-based company may be seeking an alliance with Chinese 
investors, possibly for its large but stalled Pascua-Lama gold 
and silver project in South America. 
    Song, who has met with Thornton on at least two occasions, 
declined to comment on whether China National had any interest 
in partnering on Pascua-Lama. But he said that Barrick is likely 
to want to hold onto its core assets for itself and not "put 
them out for any cooperation." 
    "Non-core assets ... they are not a big deal for them. Maybe 
this kind of thing is a potential target for both sides to work 
with," Song said through an interpreter in Vancouver where he 
was attending a conference. 
    A Barrick spokesman declined to comment on any meetings with 
China National. 
    Barrick has been selling off non-core assets, including its 
Plutonic and Kanowna mines in Australia, as it and other miners 
try to cut costs to lift flagging profits in the face of weaker 
gold prices. 
    "Both parties have a very strong wish to take real steps 
forward," said Song, who is also president of the China Gold 
Association. 
    China National and Barrick have previously held talks about 
an acquisition. The Chinese company tried to buy Barrick 
subsidiary African Barrick Gold Plc  ABGL.L  more than a year 
ago, but the talks fell through. Song said China National was no 
longer interested in buying African Barrick. 
    China National has also meet with executives from U.S. gold 
miner Newmont Mining Corp  NEM.N , Song said, but has not had as 
much communication as with Barrick. 
    China National owns a 39 percent stake in small 
Vancouver-based gold producer China Gold International  CGG.TO . 
    
 
 (Reporting by Nicole Mordant in Vancouver; Editing by Leslie 
Adler) 
 ((nicole.mordant@thomsonreuters.com)(+1-604-664-7315)(Reuters 
Messaging: nicole.mordant.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINANATIONALGOLD BARRICK GOLD/